tv Markets Now FOX Business August 31, 2012 1:00pm-3:00pm EDT
>> good friday afternoon, everybody. i'm lori rothman. ben bernanke saying the fed will provide more health of the economy does not improve. the economies far from satisfactory. what needs to be done to get the recovery moving into high gear? i will ask mitt romney's economic advisor glenn hubbard. he could be making some of the big decisions. and the dangers isaac left in its wake, we have a first-hand look at the costly aftermath and the cdc growing threat of west nile virus reported cases are up 40% in the last week, find out if isaac could make that number rise.
if you pay the price of oil is high now, 35% of the world's seaborne oil went through the strait of hormuz last year, and mention of that was stopped. coming up, melissa francis is back showing us how they can keep it moving. an aircraft carrier helping with that dangerous job and will join us live from bahrain. stocks every 15 minutes, the floor of the new york stock exchange with lauren simonetti. traders reading between the lines and looking at what they heard. lauren: was asking several traders on the floor, there was probably a lot of short covering going on. volume is anemic right now, so a lot of window dressing, that is why we have such volatility. if you look at the intraday charts the market really get at 10-10. it came out and came back down a little bit.
it hit 1804 after ben bernanke was speaking so now it has come down quite a bit. the fear gauge of the market right now. back to you. lori: federal chairman ben bernanke gave a much anticipated speech on policy this morning reiterating the fed stands ready to satiate another round of stainless if needed. taking criticism for those who say he has failed to jumpstart the economy. even mitt romney told fox business either barnes that he would replace ben bernanke. >> i would want to select someone who was a new member, a new person to that chairman's position. somebody who shares my economic views that i thought was
sympathetic to the needs of our nation. lori: glenn hubbard one of romney's economic advisors and team of colombia business school and often mentioned as the next fed chair if romney should win and we are pleased to welcome glenn hubbard. glad to have you, what do you make of romney's speech this morning? >> he opened a case for a need for more policy action. i guess i'm skeptical the fed will reserve is where to go for that action. the problem as the chairman said was uncertainty in fiscal policy and the government. we're asking too much of the federal reserve. lori: absolutely. i thought it was interesting that bernanke was as forceful as he was saying monetary policy does as much if it could, washington, help me out with a compromise or some sort of action on fiscal policy. so bringing politics in, forget the fact that it independent, a lot of politics at work and a
lot of finger-pointing. can you be so critical of bernanke given washington isn't what many say is helpful on the policy front? >> one should be very skeptical that argument. very skeptical there is ill effects of conventional quantitative easing. the bigger one is what should the government be doing? clearly the tax and budget changes are needed but president obama simply isn't leaving. lori: peter barnes replayed his interview with mitt romney last week and the follow-up question, would you put glenn hubbard into the job as fed chief and he did not say no. would you accept? >> that is premature speculati speculation, entirely up to governor romney if he were president romney. the important thing is fixing the economy.
lori: of course, had to ask. bernanke said the labor market is a great concern that perhaps what the market is reacting to today's positive comments as well it is not beyond structural disrepair, labor market can be fixed unless tight romney said he could create 12 million jobs in this country. give me some more detail on how he would go about doing that if elected. >> absolutely. the structural problems are not withholding the u.s. economy back. what is holding the economy back hiis poor public policy to suppt growth. what governor romney has talked about repeatedly is getting rid of the policy uncertainty in washington costing us millions of jobs and moved with fundamental tax reform and budget reform that gives people confidence to invest in this country again. lori: you did an op-ed about was
powerful, wrong to suggest all a comic recoveries after financial crises are slow, explained to us why you were critical of that. >> in the pre-depression we had a number of episodes of the financial crises and strong recoveries, the question is what is the policy? it is not surprising you demonize investment and risk taking you will have a full recovery. governor romney will change that. lori: glenn hubbard, we appreciate your taken analysis. thanks again, look forward to speaking with you again. okay, 17 million barrels of oil passing through the strait of hormuz everyday and melissa francis aboard the uss enterprise gaining exclusive insight into what it takes to keep oil flowing the rest of the world. it is great to see you come it has been a couple of weeks and you have been hard at work.
>> have been hard at work. the mission is twofold, one to keep commerce flowing through the sea of arabia including the strait of hormuz as iranians have been threatening to shut down the 13-mile wide passageway. there is so much commerce that flows through this area. 20% of the world's oil and tons of goods and cargo going back and forth between the gulf nations. the second part of the mission is operation enduring freedom flying over afghanistan to support the troops on the ground. they met lieutenant colonel was one of the few women in that strike group flying over afghanistan and i couldn't help but ask her what is that like? >> my mom and dad are scared to death i am out here. they say thank you for talking to me, it was great hearing your voice. seeing us dropping a bomb
keeping them safe, then i did my job. everybody thought your sacrifice and come away from home, we are away from home for a long time, but those guys on the ground living in less than optimal conditions every day, i am here to keep them safe. that is what i believe in and that is why to do what i do. >> that is what these pilots do, they fly over afghanistan, they get a call somebody on the ground need some help and provide cover fire or they just shout at the people on the ground. they heard her voice and felt so much better. the comeback that aircraft carrier. when we got on the boat i sensed a bit of disappointment from at least one sailor. he was looking for another fox business person and hugely disappointed but listen to who he was looking for.
>> so they heard fox is coming on board, fox business. disappointed to see me, who were you looking for? >> i was looking for charles payne. charles, we listen when you talk, so keep giving us that information. >> do you have a question for him? >> why didn't you come with? i know you are in the air force, but come on, buddy. >> said he was disappointed to see me. i thought maybe he was looking for you, but it's turns out he wanted to charles. coming up later on at 3:00 i will interview the guy that manages all the air traffic as it goes out over the different territories. back to you. lori: that was wonderful that little shout out to charles, who will be joining us shortly. the museum here in new york city, aircraft carrier, i got to take my kids for a
visit, the space shuttle is there now. how are you doing spending the nights i aircraft carrier? >> let's start with the good part. we were trapped, that was awesome, catapulted off, i love that, i could do that about a thousand times. we got a little bit seasick, i'm embarrassed to tell you. i was good to go the rest of the trip. there you go. lori: do you think main street has a better idea of what goes on in the middle east to get the oil supply from there to here? we had a little bit more accommodating with the fluctuations in prices at the pump? >> i think this is definitely an area the public should be focused on. the navy is out there making sure the strait is open without question.
but to make a huge difference and we would immediately feel it at the pump if something happened. every single naval officer that we talk to says they are prepared to act immediately if something happened. a one-handed is a lot of focus, on the other hand you can feel confident our troops are keeping it open. lori: looking forward to catching up with you live next week at the studio. in the meantime look forward to your continuing reports. rising tensions with iran in the persian gulf and the fallout from the global energy market at 5:00 p.m. eastern tonight, do not miss it. up next here with us, the man whose popularity goes all the way to strait of hormuz and beyond. that is charles payne with the stock picks to send you into the holiday weekend with a smile. let's check the metals as we head into the break. a huge problem if federal reserve meaning a weaker dollar, higher gold and inflation
interest concerns. $16.86 still providing in tandem, same story with copper up only slightly. doc with more after this. [ male announcer ] at scottrade, you won't just find us online, you'll also find us in person, with dedicated support teams at over 500 branches nationwide. so when you call or visit, you can ask for a name you know. because personal service starts with a real person. [ rodger ] at scottrade, seven dollar trades are just the start. our support teams are nearby, ready to help. it's no wonder so many investors are saying... [ all ] i'm with scottrade.
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lauren: i keep on cross not by numbers because they keep on going lower. $18.16 is the new low for face shares. remember that ipo day it hit $45. you can see the huge decline we have seen over the last two weeks facebook shares have not hit more than $20. two major firms cutting the price target on facebook shares, citing some worries about november 14 lockout, expiration date, many more shares will hit the market, and we're finding out facebook cofounder is shedding of the nearly half a million facebook shares with prices between $19, $19.45. thinking to a new all-time low. in the $15 price target, that is low.
lori: note that means, time to make money with charles payne. how you can profit from it the first troll scum he heard the shout out, comment in the strait of hormuz, what does that mean for you to hear something like that? speaker feels good, a lot of times people stop me on the streets and we don't talk about me being on tv but things i try to represent and people say thanks. if you let the country may be flipping. it feels good when that happens. especially a guy like that putting himself out there. lori: i am constantly all inspired but not only what you say but how you say it, who are so passionate, always on your a game. >> my biggest goal is to empower. i want so much to empower people stop being afraid. i really do. listen, just had a great conversation about everything
you buy in retail is ultimately going to be obsolete. here's what is interesting about this, we were talking about this earlier this week a report comes out, this is june, the retail index 100% since then. savings you would think making less, saving more. savings rate went from 4.924.4%. it is all counterintuitive. a lot of this is the expectations game. we don't expect a lot from them so when we get something the stock goes well over 500%. already a dinosaur of a business model fading in big cities like detroit. this stock up al up on lost 270s year. why? we had so low expectations. ask yourself next t time you buy an apple product, whatever you're buying, what is your
fear? this product will be worth zero at one point, will apple stock ever be worth zero? financially empowering yourself up with a whole lot of other things. lori: i'm just excited for the blue moon tonight. >> i will check out the blue moon and think about you. lori: now i am beside myself. i don't know if i can carry on with the hour. the aftermath of isaac, jeff flock a look at some flooding communities bringing more mosquitoes, fire ants, worms, you have seen it all. joined by doctor from the cdc and a large number of west nile cases in america. let's check the dollar in the wake of the weaker dollar, no surprise. signaling stimulus.
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>> 23 minutes past the hour, this is your fox news minute. it's not me alert listed after a 7.6 magnitude earthquake struck off the eastern coast of the philippines earlier today. the second quake measuring 5.5 the area about an hour after the first one. one person killed when a house collapsed. president obama will tour the damage from hurricane isaac in louisiana. isaac left the state but many residents have flooded homes with no power or clean water. at least five deaths have been reported in louisiana and mississippi. the slow-moving storm dumped 16 inches of rain in some areas of the bayou state. the levees spared the city any more damage. tonight could be the final matchup, 2003 u.s. open champion says he will retire after the current u.s. open champion.
there are your news headlines right here on the fox business network. back to lori rothman. lori: thank you very much. isaac headed into the midwest but left a wake of destruction behind, flooding in louisiana may actually be worse than it was with katrina. jeff flock is there with the latest. >> that is right. they survived katrina pretty well. katrina went a little bit to the east, this one came more to the west, more toward them and the floodwaters came in here when the storm came in. some people thought they were okay. not so much. a lot of this water will have to be pumped out because it is in kind of a bowl like new orleans. the mayor indicating announcing there were 30 felony arrests for
looting in the past two days. but things were quiet overnight so that is the positive. we have been showing you the impacts of this, the water and we showed you different animals and reports of an alligator out here. what's you don't want to do coming back to your home country don't want to step on an ant nest. if you step on it, take a look, this is a nest, there you go, can you see these? how quickly if you step on it, they came up my legs. they don't want that to happen to you. fire ants are a real hazard on the bayou, not a pleasant thing. lori: all that standing water raises a lot of concerns. thank you very much, jeff flock. with louisiana still dealing with the aftermath of isaac another concern is west nile. already one of the hardest hit
this year with six deaths reported so far. could the flooding pose an even bigger threat as standing water draws in mosquitoes which mark joining us now, cdc director of the division of infectious diseases. thank you for joining us, are you concerned about disease outbreak in the flood zone in louisiana gulf region? >> i'm certainly concerned about all areas that have had west nile virus this year. including in louisiana. our experience suggests that big flooding events really don't affect west nile virus outbreaks. it seems kind of paradoxical because you may think more flooding, more mosquitoes but turns out the flood sometimes washes out mosquito breeding sites and creates others. the effect is about zero.
i think the major concern is in many areas where west nile virus has occurred, the flooding and other factors related to the hurricane may cause a lot of people to be outside. exposed to those mosquitoes that have the west nile virus in them. lori: what is your take overall, what is the status update for the west nile virus in significant parts of texas and the south, a nationwide concern, isn't it? >> it is a nationwide concern. it is just a matter of how much presence. what we have seen in recent weeks is the number of cases continue to go up rather dramatically and even in new places such as in the northern parts of the country, which hadn't seen a lot of cases previously this year. lori: thank you for your take on that information.
july rise more than expected. lori, i was looking through old folders, you can't see it with pencil. when i worked down here 2005 full-time i wrote volume levels and what they were during certain hours of the day. right now at the new york stock exchange, we have 265 million shares trading that would be considered light at 11:00 a.m. a couple years ago. granted today is start of a holiday weekend and volume is lighter than usual. i'm fascinated by it how much things have dried up. volume is pretty thin right now. we're seeing a lot of activity in the homebuilder stocks. some are flying right now. they popped on the bernanke comments earlier at 10:00 a.m. you see some the names like hovnanian, for instance up really sharply. look at that, 8.5%. nice gains for the entire sector today. lori, back to you. lori: how could you find something from 2005? that is better than a time capsule? >> you ever go through old stuff and papers that you save? lori: most of it is damaging
so i try to burn it. lori, -- lauren, thanks, a great report. >> thanks. lori: oil on track to snap a two session losing streak. this comes as some gulf producers are looking to get operations up and running after isaac. fox business contributor phil flynn in the pit of the price foot cme. phil what are you seeing if. >> we're up over $1.74. people are saying it is a lot of ben bernanke and a lot of it is. a lot of stuff is going on in the gulf of mexico. you have to remember when the refineries go back online, they will demand a lot of the high quality crude. that will push oil up. one company today, chevron requested some oil from the strategic petroleum reserve to keep their refinery running, that will show you supplies are definitely tight in the gulf coast. another big story today, of course that oil traders were looking as was the report that venezuela is importing big amounts of gasoline. remember they lost that big
refinery a couple weeks ago because of the fire. now 60% of their domestic needs, they have to fill that void. that means they are going to be competitors for the u.s. for gasoline. that will keep gasoline prices up. more bad news ahead of the labor day holiday weekend. back to you. lori: whatever happened to easing into the long holiday weekend to close the summer, phil? a sign of the times. thank you, sir. more bad news for drivers. aaa sees the national average price of gasoline this labor day could to be highest ever. tom kloza, supplies information to aaa. tom, thanks for coming on the show. what do you think the national average will top out this weekend? >> i think we're close to it. we'll get 3.85. that will be the rest it gets for the rest of 2012. there is question, last year, by the way, in november and december, that those were the most expensive holidays of for that time of year at
about 3.25. i kind of disagree with mr. flynn there. i think we'll see mostly downward pressure on prices in the last 100 days of the year. lori: that is what make as market, right? differing opinions. won't pressure you there, tom. i'm more concerned about where the hot spots are. what states are outpacing the has average seeing $4 at pump? >> hot spots are west coast and pacific northwest. $4 related to the chevron refinery fire earlier this month. upper midwest, michigan, ohio, indiana, illinois because have had remeanry issues. they're a long way from the hurricane impact but they just haven't been able to clear, the product or production problems. so, a lot of $4 numbers there. then connecticut and new york, the tony little communities and stuff. lori: so, seasonally this is high time for gas as our discussion lous straits here. how quickly do you expect prices to fall?
this is kind of the shoulder season we're coming into now. >> it is and what's going to happen in the remainder of the year, number one the demand for crude oil goes into a shoulder period where we use less. globally we'll have refineries going into pit stops and maintenance that. will knock off about two million barrels a day of crude demand. driving season is over. the winter is several months away. so we'll see a drop in demand both for crude and for gasoline. it is easier to make gasoline after september 15th. so we'll get a break. whether or not it is enough so you will go out and buy the new maserati i'm not sure. lori: the specifications i'm reading in your note for most of the country get relaxed after september 15th. is that what you're refering to? >> absolutely. much easier to bake the gasoline cake after september 15th. there is lot cheaper flour available internationally and domestically. during the ozone season where you have the brown haze over income you can't use certain ingredients that are cheap.
56 september 15th with the exception of california you can use the cheaper flour. lori: how vulnerable to the market to the another your taken, another tropical event? you have to start thinking about jet fuel and heating oil once winter approaches? >> that is where i think the vulnerability is. while gasoline will be on the descent for most of the rest of the year i'm really worried about high diesel prices and high jet fuel prices. i would not be surprised we're 4:10 nationally on diesel. i wouldn't be surprised to see some states at 4.50. on jet fuel we're up 60 to 70 cents since june. i think we'll see higher fares in november and december and a little inflation from diesel which is the way things get moved around the country. lori: tough economy. knot good news. tom, thanks for being here. >> likewise. lori: fed is expected to provide stimulus if needed. when will it be provided to help the economy?
we'll investigate after the break. as we do at the break at this time, let's check treasury rates. investors are buying treasurys and equities. interesting turn there. reaction to the fed pushing out the forward guidance or expected to in the meeting less than two weeks especially after we heard bernanke saying he is ready to go with stimulus at jackson hole. 30-year is 2.71. back with more after this. you see us, at the start of the day. on the company phone list that's a few names longer. you see us bank on busier highways. on once empty fields. everyday you see all the ways all of us at us bank are helping grow our economy.
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>> i'm adam shapiro with your fox business brief. stocks continue their upward trend but are well off session highs. comments from federal reserve chairman ben bernanke initially sent investors ducking for cover. bern key says the central bank is ready to act but stopped short a clear signal of monetary easing in the near future. the parent company of american airlines, amr, and us airways reached a nondisclosure agreement. they will exchange proprietary information as they evaluate a possible merger. amr agreed during the process they won't engage in negotiations with other companies. price tag from former hurricane isaac could total $2 billion in insured losses according to the disaster modeling firm air worldwide. that is modest when compared to hurricane katrina which resulted in more than $40 billion in losses. that's the latest from the fox business network, giving you the power to prosper.
federal reserve chairman ben bernanke speaking in jackson hole this morning. really the headline of the global marketplace. saying that the fed is ready for another round of quantitative easing. they're ready to go when it becomes necessary. lawrence good man, the president of the center for financial responsibility joins us with more on what bernanke had to say and if the economy really needs qe3. larry, great to have you in the studio this afternoon. everyone agrees qe3 is on deck and will be implemented as needed. we can argue when it will come into play if you will but what more can monetary policy do at this point in the recovery? >> i think monetary policy can do precious little going forward. i think the chairman today really teed it up nicely the he delivered an excellent series of remarks going
through the costs and benefits from another round of monetary stimulus and based upon the calculus that he chartered outtoday, the fed stands very ready to do it. lori: that is all well and food. he was also forceful in his comments to washington. listen my hand are tied, not necessarily tied the i've got the tools but you guys haven't even shot off any bullets yet in terms of dealing with this fiscal policy and the debt and deficit crisis we're dealing with. >> absolutely. i think that the chairman provided a lot of fodder in the speech for many and was very clear on the fiscal front too that the government needs to take not only getting the budget deficit down but addressing our long-term contingent liabilities whether they're debt, medicare, medicaid or social security. lori: it is, it's interesting times, right? i feel like we're just grinding along and we pick apart these fed events. i know we've got a meeting less than two weeks away. perhaps bernanke didn't even
want to front run himself. he has an ecb and back to the u.s. the calendar is chock-full here after labor day. so many things going on. so much anticipation building up to them but what realisticly will get done that will make a meaningful impact to the positive before the end of the year, fiscal cliff, the election, all this other stuff going on? >> i think it is very tough to engineer a solution here. lori: yeah. >> i think the fed stands ready to provide more stimulus. bernanke was resoundingly dovish and resoundingly clear in his remarks that more is on the table. lori: is it fair for romney to be critical of him? >> i think that based upon our perspective in terms of how we're evaluating the fed's actions, and when we look at the costs and the benefits, the benefits from quantitative easing have been successively reduced with each round. so our concern is that the efficacy of another dollop of qe will not do much for
the economy. lori: right. >> we'll be lucky if we get one.5% growth. gold market is telling you another story. the gold prices were up. there was only one sentence in the comments about inflation. inflation is about 2%. lori: core inflation. >> core inflation. so there clearly are signs for concern. lori: thank you, larry. appreciate your take. >> my pleasure. lori: thanks again. it is a quarter to. as we do every 15 minutes we check the markets. lauren sim sill on the floor of the new york stock exchange, lauren, what do you think? >> talking about the tech sector. for the month of august techs are one of the best sectors. we have big gainer, shares of splunk up 14%. they're a data software proadvisor. their customers are bank of america. their sells rose 1% in the latest quarter and upped the full-year revenue guidance.
omnivision is up 4%. there an image censor maker. their revenue beat and stronger revenue for the quarter as well. lori: lauren, can you see what i'm holding up. >> a little bit of a delay. keep holding it. i have it in two seconds. what did you find from 2005? is that toilet paper? lori: exactly. it has advertising on it. tp with advertising on it. >> what is the story behind that? lori: get this. taking advantage of a captive audience. head of a company that is putting ads on your tp. would you use this before you read it? that is my first question. back with more after this. [ male announcer ] if you believe the mayan calendar,
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lori: stocks and commodities in the green following the fed chief's speech at jackson hole summit earlier today. how should you play the market bounce? sandra smith has the story from the pits of the cme in today's trade. sandra? >> lori, a lot of traders we talk to on the floor they're a little bit fearful about the short term reaction to what we saw in ben bernanke's speech this morning. if you think people are all taking the day off, not here in chicago. you see a big presence of traders on the floor. we're in the euro options pit. a lot of activity and a lot of volume down here today. looking at equity markets we're still holding onto the gains. trey from knight capital are fearful the is limited short term. ben bernanke pledged to do more if market conditions
deteriorate. we talked to traders audio who said it is really crucial we're holding onto the 1400 level here on the last day, trading day of the month. he says that's a very bullish sign for the stock market. that being said, guys, take a look at the energy market. lots of strength there. seeing strength in the energy stocks and stock market. look at oil market. we're on pays for the biggest monthly gain in crude oil futures since last october. so it has been a very bullish month for up for the first time in three days. this too is the ben bernanke bounce. there is weaker dollar case today. if he pledges support we could see more demand for energy. by the way, the yellow metal, guys, gold up 30 bucks. as i hand it back to you, lori. gold a shining star in today's trading session. back to you. lori: all the credit to mr. bernanke, sandy. thank you. advertisements can roll out in a whole new way thanks to a up-and-coming business. the company is called, star
toilet paper and offers advertising space on toilet paper. joining me the company's founder, jordan silverman. it is a business plan, a model thaw spent, many, many months planning and putting together. you still have to talk about this with a sense of humor. it is funny, jordan. it's clever. do people actually read toilet paper before they use it? >> they never had the opportunity before but we did surveys. we found that over 75% of people would read advertisements on toilet paper. lori: what inspired you? how did you come up with this? >> sitting in the bathroom, bored, using my phone. how advertisement is every facet of their lives that people don't notice. this is opportunity to get people to read and advertising is getting people to notice your company. lori: you brought some samples. important nonetheless as i do say so. is that printed on here? is that newsprint. are you concerned that it could come off in the process of used? >> that is people's initial hesitation. we've had all the ink
privately tested to make sure it is safe. we oust so i soy based ink. it will not run off. you don't have to worry about that. lori: you have to find venues. >> yes. lori: you have to find advertisers. >> yes. lori: you're the middleman. >> we use two we call a two-ply process. we give toilet paper away free to public venues. second step use revenues we bring it from advertisers to supplement that. lori: how much advertising revenue have you brought in. >> we are working with 50 to 60 local companies. smoothie king, tutor centers. we brought in $5 from first seven months. -- 5,000. lori: you're 22 years old. >> yes. lori: it is really clever. i have to give you props here because i looked first at it very kepticly. you have coupons. who will read this and take
time to clip a coupon. you have the bar code for the smartphone on here. if you see something, if you want to take advantage of one of discounts and deals make sure you have your phone in the bathroom i suppose? >> all the coupons are qr code that can be scanned or unique coupon code to be redeemed on our website. we don't want people tearing off advertisements in coupons. we want them to be redeemed online. lori: how many people do you employ? >> just founding team. we're looking to make initial hires. lori: what are your goals? >> our goals is to be in every public venue in the future and be a major form of print advertising a lot of companies utilize. lori: jordan, thanks for telling us your business plan a fun segment on the friday before labor day. got a kick out of meeting you. >> thank you for having me. lori: last night clint eastwood said maybe it is time to put a businessman in the white house. shortly after that a businessman, mitt romney, accepted nomination. did he deliver a winning message? we'll look at the impact of
this year's rnc and the road ahead. with all the opinions about stocks out there, how do you know which ones to follow? the equity summary score consolidates the ratings of up to 10 independent research providers into a single score that's weighted based on how accurate they've been in the past. i'm howard spielberg of fidelity investments. the equity summary score is one more innovative reason serious investors are choosing fidelity. get 200 free trades today and explore your next investing idea. ♪ i can do anything ♪ i can do anything today ♪ i cano anywhere ♪ i can go anywhere today ♪ la la lla la la la [ male announcer ] dow solutions help millions of people by helping to make gluten free bread that doesn't taste gluten free. together, the elements of science
lori: federal reserve chairman ben bernanke comments at jackson hole this morning as anticipated, markets reacting. all the market stocks, bonds, oil. ashley. ashley: we had a big dip from 96 up on the dow. all the way down to 20. that happened in europe. very interesting. >> thanks, guys, have a good hour. >> i'm out of here. tracy: go, baby go. ashley: thank you very much, lori. tracy: i'm tracy byrnes. ashley: i'm ashley webster, it is a positive friday for stocks. the dow, nasdaq and s&p all solidly higher putting them on track for the third straight winning month. tracy: today's boost courtesy of federal reserve chairman ben bernanke bernanke stands to help as
quote, needed. is qe3 really the answer? kevin hassett, aei senior fellow says no. he will tell us why in a minute. ashley: gop nominee mitt romney makes his case to america. the question is, did he convince voters he is the best choice to take on our struggling economy? i guess the voters will ultimately decide, but two top political mind will weigh in, just ahead. tracy: that will be good stuff. first, top of the hour. time for stocks as we do every 15 minutes. lauren simonetti on the floor of the new york stock exchange. we bounced back. we came shooting back down. we lost 100 points. now we're back up again. what is the market saying? >> very choppy session, we've been waiting for ben bernanke's speech all week when we finally got it. went into negative territory. just missed doing that after ben bernanke started speaking. but we're now up, half of the session high. but, still firmly higher. as you said earlier if you look three months charts
we've been up for all three major averages for the past three months. really nice gains, stronger gains for the nasdaq and s&p 500, if you're looking at the monthly basis. so really has been, been a pretty strong session today on wall street for us heading into a three-day weekend. volume is light. been light all week. little lighter than usual today. oil make as nice gain at that. dollar is down. that is helping to energy rise a little bit. got positive data today as well. consumer confidence, best number in three months, in august. factory orders in july also rose more than expected. so not a bad friday. back to you. tracy: thanks. we'll see you in 15 minutes. ashley: as lauren said, the markets got an early bounce from bernanke's speech, even though he really didn't announce anything new as regard to stimulus. what did he say? adam shapiro with the details. adam? >> we should probably start calling the federal reserve chairman ben bernanke captain obvious. he says all the time, we stand ready to help as
needed. hear is the thing that is driving markets from his speech. he talked about the threats from the eurozone but it was about unemployment in the united states. traders and investors listening to this part. when he said taking into account uncertainties and limits of policy tools, federal reserve will provide additional policy accommodation as needed to promote a stronger economic recovery and sustained improvement in labor market conditions. he went on to say, that unless the economy begins to grow more quickly than it has more recently, unemployment rate will likely remain far above levels consistent with maximum sustainable employment. investors, traders take that to mean we stand ready perhaps more soon than that not to start qe. no clear signal that would happen. the federal reserve chairman as always talking about the fact that europe could be a problem for the united states. back to you. ashley: it could indeed. adam, thank you very much. tracy: for more on bernanke's speech and what we may hear from the fed when they meet next month, we're joined by kevin hassett, former federal
reserve senior economist and senior fellow and director of economic policy at the american enterprise institute. kevin, thanks for being with us. the speech was pretty much what we expected, so why do you think more is coming? >> well i think that what we're seeing right now is sort of exactly what we expected. it is going exactly by the playbook, which is that the fed signaled at the last meeting in the minutes they're probably giving us quantitative easing 3 at the september meeting. and i think that they chose the september meeting for a number of reasons. one of the reasons might be that we'll get all the gdp forecast so they can see they're getting pessimistic that justifies extraordinary action. they're very worried about the probs independent to the election. looks like the fed will try to bail out obama. they will take a lot of heat. because of that, bernanke has to take the position, it is not me. it is the committee. if we went to jackson hole and said we're going to jack up quantitative easing in september he will be immediately in the line of
fire of political attacks. defendantly set up quantitative easing at end of the month. many in the markets expect that will happen. he did it without necessarily making himself a target. tracy: basically what you're saying will somehow lower expectations lower forecasts make the economy almost appear to be worse so it becomes justifiable? >> well you could see in the minutes of the meeting last time they basically said unless they see something really significant that changes our outlook, sustained growth, something we can really bank on we're likely to take action soon. i think one of the reasons that the fed is so worried we've got "taxmageddon" and all these expiring things coming at the end of the year. we saw last summer that can really slow things down. we're already growing, one 1/2, 1.7%. if we slow down from there you're looking pretty close to recession. tracy: mitt romney basically said if he is elected he will not rehire ben bernanke. does that play into the fed chairman's decision making at all?
>> you know, i don't think so. i've known ben bernanke for a long, long time and i'm sure that he is just trying to do the best independent job he can as a central bank are. i don't agree with his policies all the time. i don't think we need another quantitative easing right now. i don't think he is doing it for political reasons or out of spite for romney or anything like that. but it definitely will help obama in the sense as you're seeing with markets today, if the fed gets very aggressive in september, it will jack up markets and economy going into the election. tracy: we all know it is temporary, right? okay let's talk more about the election. you were economic advisor to george w. bush in the 2004 presidential campaign. senator john mccain's chief economic adviser at one point. if you were mitt romney's economic advisor what would you tell him to do get out there right now? what does he need to say to the people? >> in fact i'm advisor, not a full-time advisor for governor romney. but he is actually hitting all the right notes. and so, what president obama's position has been,
is that we basically should ignore the nation's big problems, not worry too much about the deficit and just have more stimulus. what governor romney has done, he put out a plan that foes after each and every major problem we have, medicare, medicaid, social security and the tax system. and proposed big reforms that could turn the economy around. i think on substance, romney is actually going as bowles-simpson did, going after the tough problems with real solutions. obama is ducking them right now. tracy: kevin hassett that is all good stuff. thanks for being with us today, sir. >> thanks, tracy. ashley: that is good stuff. a lot of people say we don't need qe3. markets are wanting it. tracy: clearly. clearly. ashley: they want to get to the punchbowl an drink. coming up making money with charles payne. charles will tell us about one retail stock trading near its 52-week high. the question is, is it time to sell. tracy: i'm the reason this stock is at a 52-week high. exactly. the gop convention had its challenges including hurricane isaac. so in the end was it a
ashley: it is time to make money with charles payne. this hour he has a stock for your portfolio with some kicks. >> that's right. hey, i don't know, back to school shopping. i know you must have started? tracy: i'm waiting for packages from this company as we speak, i know. >> last saturday i went to my fun's favorite store in soho called supreme. ashley: you survived? >> i survived. take a look at this. that was the lean out side the store. an hour to get in. we spent so much money. looked at my man to gave the look. let us in. it is in the bronx. too much traffic. had to drop him off at 125th street to catch a cab. there is store called house of hoops. there is line twice as long as picture of the house of hoops. connell, asked how do you fine these stocks. i google house of hoops.
guess what, food locker owns them. i looked at foot locker this week. wow would i be chasing the stock. tracy: is it a division of foot locker? >> it is a amazing concept. giant open window store. the line was around the block. ashley: what are they buying? >> sneak others. all basketball. i went to video on their website, perfection with kevin durant. they have 52 stores. they have a store in guam. i'm telling you. foot locker, you look at chart, you think u chasing it. pe is 1. only trading one times sales. i was looking for the stock. hoping for a pullback. this is something i kind of dig. i was digging foot locker. this house of hoops things is absolutely amazing. you better hope your kids never find out about it. tracy: stocks from foot locker, that are more expensive than the shoes. ashley: socks? tracy: socks. stupid nike elite stocks --
socks. what is that? ashley: they're elite. >> don't want to get political. there is no such thing as trickle down. when you see those kind of lines there is always trickle up. tracy: charles payne. charles was driving this morning what do you have? denali. ashley: escalade. >> jaguar this morning. ashley: the jag. tracy: we need to talk about ford. ford driving ahead wit strong sales of its focus, believe it or not. the car is on track to take over toyota corolla to be most sold car in the world. they have sold 27,000 more than the toyota corolla. ford recently revamped focus line which is sold in over 100 countries. ford passed a huge milestone, producing its 350 millionth vehicle since the first model t back in 190. it was a ford focus. ashley: ford focus.
my mother drives a ford focus in florida. tracy: still have my grand father's 1922 ford model t. ashley: do you take it out on the street? tracy: my uncle refur ish abouted it. puts in car shows. wins every time. ashley: fabulous. tracy: so beautiful. >> you remember new coke back in 1985? kind of. it was a disaster, right. tracy: awful. ashley: not sure people at pepsi do. according to "the wall street journal" pepsico thinking of changing its formula in diet pepsi and making it more like one used in international markets. the company wants to soda to taste like it does after it is made. apparently heat and shaking causes the artificial sweetener makes the taste change. doesn't matter to my partner, tracy byrnes who loves diet pepsi. tracy: i love me my diet pepsi 2:00 every day. i like it ways the aspartame breaks down and makes it.
ashley: who doesn't love broken down aspartame. tracy: if you leave it in the scientific form i might never drink it. ashley: i don't like diet pepsi. love diet coke. tracy: can't drink it. ashley: fair and balanced right there. as we do every 15 minutes. let's check the markets. lauren simonetti on the floor of the nyse. two companies having different reactions from their earnings today. we'll be fair and balanced today as well. let's talk about the winner. splung. their customers are bank of america and zynga. revenue up 71%. they boosted their full career revenue guidance as well. this stock is surging 14% today. it ipo'd back in april at 32. it is up since then. which we can't say for all stocks that have recently ipo'd. the loser would be zumiez. this is the retail they sell billibong and nike and those
kind of companies. in the earnings report said august same-store sales rose but not nearly as much as expected. that is considered bad news, remember yesterday we got all the comps from the retailers really strong data. zumiez is not showing that. they also notice some of their customers, back to school shopping started a little bit late for them. they might see a stronger september. here is to hoping. the stock is down 10%. back to you. ashley: thank you, laura. we'll be back in 15 minutes. tracy: that stock is up 71% for the year. don't go crying. skateboarders will need new pants eventually. >> coming up it was a critical night for gop nominee, mitt romney. did he seize the moment? we have two top political minds to weigh in next. ashley: how is the dollar faring as we head into the long labor day weekend. let me have a look. it is down, isn't it. the euro is up as is the pound. canadian dollar and mexican peso and the full house, the japanese yen. we'll be right back.
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destroying roads and bridges and cutting power to several cities. small tsunami waves appeared along the philippine coast. the warning was eventually lifted the area was hit with a second quake measuring 5.5 about an hour after the first one of the at least one person was killed in a house collapse. the pent formally issued a warning to a former navy seal who has given inside details about the killing of usama bin laden. no easy day violates a agreement saying that he would not reveal details about the operation. it was 15 years ago today that princess diana was killed in a car crash in paris. admirers are leaving photos, messages above the flame of liberty monument which sits above the exit to the tunnel where the crash occurred. that is the fox business network. get you back to ashley and tracy. ashley: hard to believe it is 15 years. tracy: i can tell you
exactly where i was when i heard the news. >> most people can. tracy: i watched her wedding. i got up to watch her wedding. ashley: oh, boy. tracy: it is official, mitt romney taking the stage last night and accepting republican nomination for president. rich edson joins us from washington, d.c. first of all, did you take a space jet back? how did you get back so fast? >> i actually should have gotten back a little earlier. some mechanical problems. it took them longer to fill out the paper work fixing whatever the problem was than it was to actually fix the problem on the plane? that was this morning. they got us here i guess in time and, much easier air travel, governor romney and congressman ryan are back on the road. not really on the road. in the air. official republican candidates after this week's republican national convention. romney is meeting with louisiana first-responders in the wake of hurricane isaac and ryan is in richmond, virginia. and with vice president joe biden addressing unmembers in ohio, both vp candidates
are squaring off. >> if we stay on the sail path, we'll get more of the same results! look where president obama has taken our economy. 23 million people struggling to find jobs. the poverty rate in america is the highest it's been in a generation. >> what is new about their plan? not only it's not new, it is not fair, it's not right and it won't get this economy moving. how do we know? folks, it didn't do it before. and it will not do it now! [applause] >> now that republicans have had their we can show casing their candidates economic plans it is now the democrats turn in charlotte next week where we expect democrats will blame slow growth on republicans refusal to spend more federal money and republicans charge it is democrats plan for higher taxes and debt that led to slow hiring. back to you. tracy: rich edson, i presume
you're heading to charlotte, sir? >> actually that is peter barnes. he goes from jackson hole to charlotte. traveling d.c. bureau. ashley: busy folks. great job, rich. >> thank you. ashley: how did the romney-ryan ticket do at the rnc? i guess everyone has their own opinion. joining me with reaction and a preview of next week's democratic national convention, fox news contributor and news day columnist, ellis henican and noelle nikpour, author of branding america. let me begin with you. how did the gop presidential nominee do last night? did he seal the deal? >> home run. the speech needed to happen. he needed to close the gap to where he was connecting with the average joe voter and he did it. i was so proud of hill. and i will tell you what. the whole convention actually i think was kind centered around making people, get to know, kind of introducing romney, the human being. and i think that he actually
did that. and now it is going to be up to the voters. if i were somebody that was riding fence, not knowing what i wanted to do, and i saw the background on mitt romney, as a man, not as a politician, but as a man i would be sold. he really, it really put a human touch on mitt romney, who has been criticized for being more robotic. ashley: let's bring in ellis. did we meet mitt the man last night? do you think voters got more personal view of the gop candidate? >> clearly a more personal view. the bar was set pretty low here. he revealed so little about himself, his own humanity and feelings and intellectual journey that taken him to so many difficult positions. he let us in a little bit. the family stuff was powerful. the rose story about the parents was nice. it was good enough would be the term i would use. ashley: ellis, let me stay with you. three main objectives.
image issue, appealing to the female vote and hispanic vote. ellis, he obviously stress ad lot of issues regarding women voters. do you think he made some points that could win some votes? >> seems a little transparent on those two, ashley. he did better on the image stuff. he did make genuine progress here. hey, my mom ran for senate and my dad was behind her, i think that is long way from reversing the dam from contraception and some issues that have dogged mr. romney through the last few months. ashley: noelle, what do you think with regard to the female vote. was it transparent or did he make some good points. >> i think he made excellent points. he bridged that gap. there is no war on women with the gop. if anything, mitt romney basically said that we have a lot of women in politics and if you look back, he is a big promoter of women succeeding. so this is just malarkey,
when i hear that. this is something that, i think he also went back and focused on economic problems that we're dealing with in obama's failed policies which he gently and gracefully slammed obama which i thought was absolutely wonderful. but he stressed how important a woman's role is in leadership. and that, my friend, is going to take us to the bank and that will win us the election. ashley: what do you say to that, ellis, very quickly? >> well, i don't think the polls support it. there is huge an indeed maybe a growing gender gap here. listen, we got a lot of months before the election. maybe he can make the sale but i think it will take more than one speech, remembering mom fondly. ashley: we'll have to leave it there. we could talk for the rest of the hour. noelle nikpour and ellis henican, thanks for joining us and breaking down the speech and the convention which of course wrapped up last night. tracy: great stuff. anybody could use malarkey and hero to me. ashley: word of the day.
tracy: from bad to worse, from one bankrupt california town, san bernardino happened to use off limit money to make payroll. gerri willis is on that story next. ashley: let's look at some of the winners and losers. the dow up 116 now. lots of winners out there. goodyear with a good day. up nearly 4%. we'll be right back. you know what i love about this country?
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dow. with bobby here, a broker, you were saying looking at these levels you think the market is priced a little too high right now? >> i just think and been saying it for a while, with all that's going on, the terrible unemployment here and the way the economy can't really get itself going, i'm surprised that the market is so high. i'm not looking far big crash -- for a big crash, but you know on the on the other hand it hasn't come in either. it keeps drifting higher. i guess with all the problems we have seen in the european and chinese markets as of late, maybe it is sort of a flight to quality. people have cash to spend. they want to put it here. we seem to be holding on a little better than the other places. >> so the u.s. is exactly the flight to quality. what do you make of bernanke's comments? is this hope for a qe going to sustain us for the rest of the year? >> i think it is sort of nonevent. he seemed to say what he's been saying all along. i think people have taken it a little stronger and said that he's going to purchase assets at some time. we have seen it the last few
weeks or two or three months that people seem afraid to short the market here there's no reason because they keep waiting for the stimulus to come. the last time we did qe, the markets kept going up and up so it is kind of hard to get short. >> we wait and we wait. what does europe have to do with everything today? do you think that rumors of more ecb bond buying are stimulating the markets rite now? >> well i suppose that has a little to do -- i mean, you know, there was speculation that some big announcements may come when draghi pulled out of the jackson hole forum, if ecb is going to be in there and purchase bonds which they are not happy to do and a lot of people don't want them to do, i think people are calling for that and that may help things over there. >> bobby, thank you very much. have a great labor day weekend. back to you guys in the studio. ashley: lauren, thank you. tracy: well, it's been a month since san bernardino california filed for bankruptcy protection. that was only beginning. new problems are arising for the
city as it lays out plans to pay down some of its debt. gerri willis is here with the latest outrage. >> ridiculous, this is a great story. it tells you just how screwed up california is. ashley: if we didn't already know. >> you're probably clued into that already. they are saying they're going to raid their restricted funds to pay their daily obligations to pay salaries to pay whatever it is they buy day-to-day and you are not supposed to do that. they are already under investigation by the feds. their budget has a 45.8 million dollars shortfall even with raiding the restricted funds they will still be 7 million dollars short. tracy: what are the restricted funds supposed to be for? >> long-term obligations. tracy: emergencies too as well? >> right. ashley: where else do they do? >> there's nowhere to go. that's a good point. the other problem they are encountering right now they are in a big fight with calpers which is the biggest pension fund in california. they believe they owe calpers unfunded pension liabilities of
143 million. calpers says it is more like 319 million, they are not even close. it is going to end up in a lawsuit. what do lawsuits cost? lots and lots of money that they don't have. so 23 t. -- so 210,000 residents in this city. it is a big deal, large city with a lot of financial problems they can't seem to get their way out of. it is really a warning post. ashley: bankruptcy -- they are having to dip into this money? >> they are trying to get bankruptcy approval now. they are in that process mow. i have to tell you 30% cut in spending. 100 people are being laid off and they are still not there. they still can't get through. this is the best part of the story i think. they have a meeting to figure out how to do this, city council was going to get together, they wanted to have it closed to the public. well the newspapers in town had a fit and everyone too calling up their city councilmembers. tracy: they should. are we doing more on this tonight? >> we are not doing more on this. tracy: you should. it is a big story. >> sadly we are not doing more.
but we have governor mike huckabee who i love to chat with. fantastic speech at the convention. we will ask his reaction to mitt romney's speech, did he like it or not? we will find out. tracy: good stuff. thanks gerri, california, just love it. from europe to the fed to the jobs report, wall street will have a lot of big news in the coming weeks. next we have one big money strategist that tells us what he's paying most attention to. ashley: not the whole state of california, just those in charge that are making the stupid decisions. let's see how our ten and thirty year treasuries are moving. yield on ten year, down 5 basis points, down close to 1 1/2%. also down on the 30 year, 2.70%. want to try to crack it? yeah, that's the way to do it!
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adam: i'm adam shapiro with your fox business brief. consumer sentiment climbed to three month high. university of michigan final august reading coming in better than expected at 74.3. on the flip side the survey's gauge of consumer expectations fell to its lowest level since december. marathon petroleum is tapping into the energy department's emergency oil reserve in the wake of hurricane isaac. the company is borrowing 1 million barrels of crude oil after isaac caused one of its refineries to operate at reduced rates. and with today being the friday before labor day, millions are expected to hit the road, but there is some bad news for drivers. gasoline prices hit record price
ashley: have you ever seep a film and -- have you ever seen a film and thought that was the worst movie ever? i think we all have. apparently the new film the big balloon adventure has all horrible flicks topped. with more on this story or very own dennis neal. >> it cost 20 million dollars to make and 40 million dollars to market. and now the big balloon adventure may set the record for the worst opening weekend for any film ever. it's kind of a rocky horror picture show for 3 to 5-year-olds. toddlers are urged to dance in
the aisles to songs sung in babyish voices by felt costume characters that one website calls three giant terrifying noticeless puppet heroes. and worse yet, they are brought to you by the same guy who gave us toddler tv's tell-a-tubbies, in the 1990s actually. ashley: how bad is it though dennis? have you seen it? >> it's so bad that when it opened wednesday night at 2160 theaters, it brought in only $100,000 or so, and that is $47 per screen. look at some of the big names in this film. you have tony braxton, christopher lloyd, and jamie presley. ashley: what are they doing putting their names to this
movie? >> i know. what were they thinking? for a kiddie film reviews are comically cruel. take a look at this snippet from the guardian in the u.k., quote, he says it is fun for everyone, they get to dance and sing on screen, the kids in the audience get to dance and the minimum wage staff get to clean up the mixture of sweets, drinks that's in the auditorium after every screen wondering why their lives are an endless pit of despair. that's what the guardian says. ashley: that's quite a review. tracy: our next guest says we're in the midst of a zombie economy, not quite falling off the cliff rg but not growing -- not quite falling off the cliff, but not growing either. joining us is a a guest from the channel capital research institute. we have been hearing about this zombie economy for a while now. are we officially japan? >> we are going japanese definitely in a way. how much more we go depends upon
our current path. right now monetary reform can basically cushion this stuff, can't cure it. so we need to address some of the fiscal problems we're dealing with, whatever the solution is, and we haven't been doing that. tracy: right, so monetary policy, are you talking about more liquidity injebted into the market. -- injected into the market. we have seen it hasn't worked. go fiscal side, we are punting at the congress aren't we? >> the fiscal side is really congress's responsibility. they have tried to punt to it the fed and now the fed is punting it back really to congress. tracy: what do you think the way the market reacted today after the speech? we were up about 100. we get the minutes. it falls all the way down to like 20, the 100 points come back. are we digesting it or is the market unsure of what he's going to do? >> right now it is more or less breathing a sigh of relief. if you look at it from where we are right now versus where we were a couple of days ago, all we did was really recover from the sell-off that we had the day before. people were scared that maybe something was going to come out of that speech, you know, let's say that was unintended, maybe some more hawkish dialogue,
possibly something a little bit more, that the economy is improving, then at that point, it didn't come out that way, but then again, there was no further indication of qe 3, so we kind of went back in a really volatile way, back to where we were before. tracy: right, nothing new, nothing has changed; right? and yet back to the zombie economy, we have a market that's moving. up well over 12% on the dow, s&p, nasdaq, all up for the year. so zombie economy, i could be missing this rally if i'm not in it. >> yeah, but ultimately what you have to look at is if you look really at some of your higher yielding bonds, they have been delivering some similar levels of return, so really the reason why it is up is that actually we're forcing people into the risk trade because a lot of people would rather be in cds rolling them over, but if you are sitting there and before you were used to getting 5%, you are now 1%, you are going to stretch to take risk. that's why the market is up. tracy: no choice, doug roberts thank you very much. have a great labor day. >> you guys too. ashley: all right. well it's coming up to quarter
till the hour time for stocks as we do every 15 minutes. let's head down to lauren simonetti on the floor of the nyse. another tough day for facebook. >> $18.09 is the level of facebook right now. $18.08 is an all time low for this stock. so this thing is really flirting with falling below $18 right now. several analysts came out with negative comments on the stock. bank of america is concerned about the lock up expiration period over the next year essentially. and bmo capital markets says wall street sentiment is worse than advertisers sentiment on the stock at this point. also found that cofounder sold about 450,000 shares. this is what's weighing on facebook. down 5% today. back to you. ashley: lauren, thank you. tracy: we have some breaking news for you now, oil closing up $1.85 a barrel. that's now at $96.47 for the month. it is up 9 1/2%. the second straight month of gains and the largest percentage gains since october of 2001 --
october of 2011. ashley: last big weekend of the summer so hopefully with the driving season dropping down, hopefully gas prices will as well. we will see. tracy: isaac has not helped or won't help. isaac finally moved past louisiana, leaving the state devastated with flooding and power outages. lieutenant governor jay guard -- jay darden will tell us how louisiana is beginning its long recovery next. ashley: let's take a look at today's winners and losers. we will have a look at those and more when we come back. [ male announcer ] let's level the playing field.
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ashley: stocks and commodities in the green following ben bernanke's speech at the jackson hole summit earlier today. so how should you play this market bounce? sandra smith has that story from the cme in today's trade. sandra? sandra: well, traders here in chicago are playing it ways that you might not have seen yet actually. let's throw up the board, the bernanke bounce is seen across the board in the commodities markets. by the way, you will notice that these are actually full today. traders despite -- despite the long weekend, they came in.
the bernanke speech was a big one. they are still here in the final minutes of trading. silver the best performer at the cme today, up 3 1/2%. rbob gasoline, wholesale gasoline prices, crude oil, gold up more than 30 bucks guys. nearing $1700 an ounce. natural gas prices up couple percent. citigroup says looking at those crude oil prices they believe crude will go up even further next week when we get supply, inventory reports that are going to reflect a drop in supplies after the storm this week. by the way, we just got the closing prices, 96.42 for crude oil. for the month, guys, that's the best monthly performance for crude oil going all the way back to october of last year. so the prediction or the speculation down here on the floor is that bernanke hasn't acted yet, he's going to act. it's going to send dollar down and commodities up. look at silver by the way. this truly was the sleeper of august. silver the top performing commodity at the cme, for the month of august. it was a big winner, guys. lots to talk about that $31
silver price, not just gold shining, silver as well. back to you. ashley: all right, sandra thank you very much. appreciate it. tracy: the weather started to clear in louisiana but the damage is far from over. residents are dealing with isaac's aftermath, including severe flooding in many areas. jeff flock is in louisiana where flooding may actually be worse than it was with katrina; right, jeff? jeff: you know, that's the crazy thing about this one, tracy. in this street, for example, these guys did not get heavy water from katrina. you know a lot of people think well katrina went to new orleans and this went to new orleans. it was the same thing. not the same path at all. katrina came in straight north. this one came in isaac more to the northwest. and katrina came in more to the east. so the worst of the effects were more east. this one more west. and so this is a community, people thought they were okay, didn't happen. you see all the water here, and this is another one of these communities that's in a bit of a
bowl, and the water just not drain out. it's gone down and maybe lance if you are able to look over there, you can see all the debris, that is essentially what gets left behind after the storm goes and the water begins to go down, a lot of garbage is left. but the water has only gone down a certain level, and some of it may need to be pumped out before we're done. you see all this debris. boy, can you imagine cleaning all this up? not a good time. at any rate, that's what a lot of these communities now are facing after this storm that wouldn't go away. it's gone, but the trouble is not gone. tracy: yeah, and jeff, i know earlier you were showing us the ants and at one point i think you mentioned they were on your leg, but i thought that's not a good thing, that they are pretty dangerous? jeff: no, they are. you don't want them -- i was trying to give you -- we found a nest and i was showing you the nest and they did run up my boots but you have to knock them off there, by golly, because if they get on you, you will know that you had ants on, fire ants.
tracy: i think it was shepard smith, pulled someone off the street, talked to them about being down there, he said i'm done, i want out of here. are you hearing that with people, that they are done living in new orleans jeff: you know, just on the radio today, i was listening to a big talk radio station and people were calling in and saying, you know, if we're going to live here, we've got to be prepared to deal with this ourselves. government is not going to help us. we are going to have our own generators. we are going to have to be willing to deal with this stuff if we want to leave here. a lot of people are not willing to do that, they left with katrina and another batch i think will leave after this. ashley: part of the problem, defenses and levee system they spent billions of dollars surrounding new orleans that's pushed water into areas that wouldn't normally get it because of those new defenses. jeff: this is st. john's parish here, and they claim now -- i don't know what the deal on this is, but they claim a lot of that
water that would have gone into new orleans got diverted this way because of it. and so there you go. it could be. it could be. tracy: jeff flock, scary stuff and it is going to take them a long time. our hearts and prayers are with everyone down there. you too, be safe, jeff. ashley: watch out for those ants. tracy: that was scary stuff. ashley: it was. this isn't so scary. heineken is launching two new beers. in the u.s. next month as it tries to improve its business here in the states. the world's number three beer maker wants the rely less on europe where beer drinking has been sluggish as its economy continues to decline, i find that hard to believe. another problem for the industry in recent years many beer drinkers have put down their pints in favor of wine and spirits as producers have unleashed the flood of new products. the new beers mark the first release by the way from heineken in the u.s. market in over ten years.
so there you go. tracy: is that the idea though to make beer fancy so that more americans drink it? ashley: i don't know. tracy: cheryl casone takes us through the last hour of trading. countdown to the closing bell is next. hey! did you know that honey nut cheerios has oats that can help lower cholesterol? and it tastes good? sure does! wow. it's the honey, it makes it taste so... well, would you look at the time... what's the rush?
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cheryl: welcome to the last hour of trading for the month. hello everybody i'm cheryl casone in for liz claman. and the countdown to closing bell begins right now. all right, you are looking right now at a live picture of jackson hole, wyoming, where fed chairman ben bernanke delivered a speech just this morning.